Regresar

Economic impact of the elimination of gasoline, diesel and LPG subsidies in Ecuador: systematic review.

Abstract:

The research carries out an economic impact analysis as a result of the elimination of fuel subsidies (diesel, gasoline and LPG). A dynamic MIP is elaborated projecting the GDP, through an ARIMA econometric model of time series, and through the Leontief production equation, the production of the sectors of the economy, necessary to meet the final demand of the country, has been calculated., until the year 2025. This initial analysis is considered as the base situation, and then; in a second moment, a change in the prices of production factors has been simulated as a result of the elimination of fuel subsidies, these new values, both in intermediate consumption, final demand and total consumption, are compared with the situation base, and the changes generated in the macroeconomic and sectoral values of the country are studied.